Home / Knowledge / News / Textiles / China Linen acquires Lanxi; will expand two main product lines
China Linen acquires Lanxi; will expand two main product lines
20
Nov '10
China Linen Textile Industry Ltd, a China-based producer of linen yarn and fabric, announced that it has acquired a 100% equity interest in Lanxi Tianxianfang Linen Co., Ltd for approximately $6.7 million. The acquisition will expand the capacity of the Company's two main product lines and enable China Linen to meet its growing customer demand.

China Linen entered into a fixed asset lease agreement with Tianxianfang on July 1, 2010 and has been operating the facility since that date. The acquisition of Tianxianfang includes a 23,358 square foot office building, a spinning production line with 3,000 spindles, bleaching machines and other equipment.

The acquisition will increase the Company's line yarn production capacity by approximately 620 ton, or 39%, to 2,220 tons annually, and increase the linen fabric production capabilities by 2.1 million meters, or about 26%, to 10.2 million meters annually.

This acquisition is expected to add approximately $4.9 million in revenue and $1.2 million in net income annually, while maintaining gross margins of approximately 30%. In addition, the bleaching factory which was acquired as part of the transaction has an annual capacity of processing 10 million meters of linen fabric, and is expected to generate approximately $1.5 million in additional net income over the next twelve months.

Mr. Gao Ren, Chairman and President of China Linen, stated: "We are very excited to announce the acquisition of Tianxianfang, an important milestone in our goal to become a vertically integrated producer while expanding capacity. By adding a downstream component to our production cycle, we are complementing our core competency while protecting our margin profile. The acquisition will enable us to drive incremental growth by fulfilling more sizeable orders from both domestic and international customers, which we expect to further improve our financial and operational performance."

China Linen Textile Industry Ltd

Must ReadView All

Textiles | On 27th Apr 2017

Maharashtra govt working on second textiles policy

The textiles department of the government of Maharashtra is working...

Apparel/Garments | On 27th Apr 2017

EC takes action to make garment sector more sustainable

The European Commission (EC) has presented a set of focused actions...

Textiles | On 27th Apr 2017

Seven new organisations join ZDHC Programme

The Zero Discharge of Hazardous Chemicals (ZDHC) Programme from...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X